Ofcom has fined BT £2.8 million after its subsidiaries, EE and Plusnet, failed to adhere to consumer protection regulations. The UK regulator’s investigation revealed that both companies neglected to provide clear contract details to numerous customers before they signed up for services.
The regulations, introduced in June 2022, require service providers to offer consumers and small businesses comprehensive contract information, including price, contract length, service speed, and early exit fees. However, EE and Plusnet did not comply with these rules for around 1.3 million sales from June 2022 to September the following year, affecting at least 1.1 million customers.
Ofcom’s findings indicate that BT was aware of the impending non-compliance from as early as January 2022 and chose not to meet the deadline, likely to cut costs. Other providers met the regulatory requirements on time, dedicating the necessary resources to do so.
BT’s non-compliance wasn’t an oversight but a deliberate decision to delay adherence to the new rules. Ofcom stated that the significant fine reflects the gravity of the breach, emphasizing the importance of consumer protection.
BT has already taken steps to contact most affected customers, offering them the chance to request the necessary contract information or cancel their contracts without charges. However, some customers had left early and were charged exit fees, which they should not have paid. BT has been given five months to identify and refund these customers and three months to contact any remaining affected customers to offer them their contract information or cancellation without fees.
Furthermore, BT must ensure all its sales processes comply with the regulations within three to five months, depending on the sales channel.
Ofcom’s Enforcement Director, Ian Strawhorne, criticized BT’s failure to meet the implementation deadline and stressed that the fine serves as a penalty for its shortcomings. He reaffirmed Ofcom’s commitment to enforcing rules that protect phone and broadband customers, hinting at potential future actions against other non-compliant providers.
